IBM Edge 2012 Recap: The Executive Plan to Drive IBM Success
During IBM’s inaugural Edge conference in Orlando, FL, theCube was host to a number of executive, partner, and customer interviews conducted by SiliconANGLE founder John Furrier, Wikibon founder Dave Vellante, and Wikibon analysts John McArthur and David Floyer. This team not only conducted live video interviews during the conference, but also hit the conference sessions and show floor, noticing a lot of familiar faces, seeing a bunch of new faces, and most notably, sensing a strong IBM executive presence.
IBM Edge is a whole new ball game for IBM’s management. The conference is a huge step forward for them as they come together as a unified team and company. Where continuity has been missing amongst the executives, this conference represents an opportunity for IBM to deliver sustained momentum, taking advantage of one of the highest levels of organic R&D in the market and leveraging the cash hoard as the company applies its successful M&A model to the storage space in order to “bring back IBM’s storage mojo,” as Vellante describes it.
There’s no question, IBM remains extremely relevant in C-level discussions throughout the market and in many verticals. IBM has a body of knowledge and a level of trust that other organizations will have a very tough time touching. IBM needs to recognize that, in today’s business world, it’s not just about the product anymore – a lot of customers don’t care if the product isn’t at the top in terms of feeds and speeds or if it is out of date, they just want their problems solved.
IBM’s message is resonating. IBM’s sales team and partners are taking the messaging and running with it full force. Of course, there is a long way for IBM to go in terms of offering more than just storage, but its team members all see storage as the core to the solutions they offer; they view it as a component/enabler for the solutions and recognize that ultimately it will no longer be about selling a box product. Customers and the market see this as well; Furrier noted “individuals tweeting about how surprised they are at how much IBM is talking about big data.” People appear to be impressed with IBM’s portfolio –IBM seems to have the substance and resources to pull it all together, leveraging strong R&D and successful M&As. “This isn’t big data whitewashing,” said Vellante. IBM is the real deal.
In addition to its proven M&A model, which takes early bets on emerging technologies as a way to build out the company’s portfolio by folding them into its existing solutions for existing customers, IBM’s model of running its business has also succeeded for the company for many years and will likely continue to work for it as it expands its storage product line into operational business solutions revolving around:
- Virtual data centers and the Cloud
- Mobility and experience-driven applications
- Social media, real-time analytics, and dashboards
- Big data as the “tortilla that wraps the above three elements into a business intelligence, storage-driven burrito,” as so eloquently described by Furrier
In order to succeed, IBM will also need to prove to the channel that it is still an attractive partner. Based on attendee feedback and the IBM partner interviews conducted during the conference, the partner relationships appear to remain strong, and IBM remains crystal clear on its partner strategy – one in which IBM invests in the channel, and the channel invests back. A number of IBM partners were looking for this reinforcement from IBM, which they found first-hand at this conference through their invitations to the conference, technical training during the conference, and the partner pavilion on the show floor.
While most things appear to be lining up well, “IBM’s business model will have to change slightly. Packaging and pricing will need to better align with the market needs,” said Furrier. “It will ultimately come down to the value proposition – the true economics for doing business with IBM.” Organizations will want and need more than storage – and IBM will need to deliver.
Most importantly, IBM can’t let this conference die. What the conference represents, including the momentum that it drives, must be maintained at future events.
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